“A lot of folks said that millennials would go off and just rent,” said Jonathan Corr, chief executive of Ellie Mae in Pleasanton, Calif. “But as they hit those life-event years in terms of getting married, having children, they’re starting to make that transition.”
That doesn’t mean they’re ready to sign a check. Millennials in about half of large metropolitan areas are underestimating how much they’ll need for a down payment on their first home and are not saving at a fast enough pace.
Look at this:
Surveyed millennials reported current savings at $14,469, monthly savings of $360 and help from outside sources of $8,264, on average. At that pace, it’ll take them nearly 28 years to save enough money for a down payment, even though 37 percent of millennials said they’re planning to buy between three and five years from now.
So they have that much in savings and WHOOPS STILL CAN’T LIVE IN SAN FRAN because they are not the Rich Kids of Instagram:
In the San Francisco region, a 20 percent down payment on a median starter home (based on price data from Trulia) runs at about $142,800, more than double what respondents to Apartment List’s poll estimated.
That is insane. Even if you are making, let’s say 60K, in your twenties which is a dubious proposition in the “work for the ‘exposure’ and the ‘opportunity'” economy, the DOWN PAYMENT is more than twice your annual income. “Well, just move somewhere cheaper!” Okay, and the jobs there are … just as good? At least acknowledge that some places deliberately — through government policy — price out the people who work there, mandating those people have long commutes in from affordable locations, creating wear and tear on both the roads and their lives.
Mr. A and I, in our early 40s, have no problems anyone should care about, and we still look around where we live and say, well, if we moved someplace where our jobs wouldn’t be as good, we could afford a much bigger place … if only we were making as much money as we are with the jobs we have here which we couldn’t necessarily. Which makes no fucking sense, and we attended college in the glory days when you could either self-fund most of your tuition or your parents could pay for it without mortgaging THEIR house. Like I said, we ain’t poor and this is still a whackadoodle equation, so what if you’re just starting out and have 100K in debt on your back?
I would not be a 19-year-old again if you put a gun to my head.